The new stock 50 index opened slightly higher in the morning and walked out of the barefoot yang, and the intraday shock all the way up, more than 260 stocks that have been listed on the SGX market are all red, and none of them fell.

At around 13:33 in the afternoon, the rise of the new stock 50 index expanded to 5 percentage points, successfully breaking through the high before 1575.05 points and setting a new all-time high, and investors were boiling.

No one expected the new stock 50 index to plummet by 1,156 points before the market came out, and then they did not expect that it would hit a record high again in such a short period of time.

With the passage of time, near the last 40 minutes or so of the end of the session, the SG 50 index continued to maintain an upward momentum, and stood above the 1,600-point mark at around 14:43, and finally walked out of a bald head and bare feet long white candle with a large volume.

The Shanghai Composite Index rose +3.34% to 2,916.62 points, with a turnover of 236.5 billion, the Shenzhen Component Index rising +4.00% to 10,159.93 points, with a turnover of 395 billion, and the New Stock Exchange 50 Index soaring +6.75% to close at 1,603.38 points, with a turnover of 237.3 billion.

The volume of the three major markets rose sharply, with a total daily turnover of 868.8 billion on the same day.

Since the all-time low of 780.15 points to today's close, the SGX 50 Index has risen by +105.52%, doubling in just about four months.

Even from a year-on-year perspective, the SGS 50 Index has risen by +60.33% during the year, and the bull market of SGX is not only far ahead of the A-share market this year, but also among the world's major stock markets this year.

……

Tranquility Villa.

Tian Jiayi, who is staying with Fang Hong, said: "With the SGX 50 Index hitting another all-time high, the market is once again calling for SGX to launch more indices to meet the investment needs of the market, and SGX also met today to discuss this matter. ”

Since the first batch of companies registered and listed in January this year, SGX has maintained a double-digit issuance rate every week since then, setting a new record for the speed of new shares issued in the A-share market.

At present, the number of companies that have completed registration and listing has reached 267, and 22 new shares have been registered and listed this week.

Even when the market plummeted some time ago, it did not affect the progress of the new stock listing, and the double-digit efficiency was maintained every week to accelerate the expansion of the listing.

At this rate, it is widely predicted that SGX will have more than 500 registered companies in 2016.

With the rapid expansion of listed companies in the SGX market, investors are frequently calling for SGX to launch more and richer indices to meet the investment needs of different dimensions of the market. At present, there is only one SGX 50 index, and its constituent stocks are all super heavyweights at the level of hundreds of billions, and there are no 50 of them so far.

The SGX 50 Index is undoubtedly the absolute face of SGX, which is the SGX large-cap index.

But at the same time, as the stock pool in the market is getting bigger and bigger, there are more small-cap growth stocks on the SGX, and these listed targets are generally worth billions of dollars, and there are not many that exceed 10 billion.

Since it is basically difficult for these listed targets to enter the new stock 50 index, most small and medium-sized investors can only stare dryly if they want to invest in these stocks.

The vast majority of ordinary small individuals cannot buy small tickets because they cannot meet the investment access threshold of the SGX, and they can only buy ETF funds that track the new stock 50 index by investing in ETFs on the market, which leads to a large influx of funds into the new stock 50 index, which in turn promotes the rapid bubble expansion of the new stock 50 index.

Many investment institutions in the industry believe that this will further exacerbate market volatility, which is why they continue to call on SGX to launch some small-cap stock indices and small-cap index ETFs accordingly, which can not only meet investors' investment needs for small-cap growth stocks, but also bring abundant liquidity to these small-cap stocks, and avoid excessive concentration of funds into the constituents of the SSE 50 Index.

At the end, Fang Hong asked succinctly: "What does the SGX side think about this?" ”

Tian Jiayi replied: "I have read the minutes of today's meeting of the SGX, which is generally inclined to the call of the market, and the launch of more indices and corresponding ETFs can take into account each other, achieve a reasonable diversion of funds, and be more conducive to the long-term healthy development of the market." ”

Fang Hong smiled and said, "In this way, you are also more inclined to this. ”

Tian Jiayi was noncommittal.

Now so many shareholders have poured into the SGX market, but because there are too few investment varieties to choose from, they basically buy the SGX 50 Index with both eyes closed, and the number of retail investors who can invest in SGX stocks in the entire A-share market does not exceed 2 million.

This is the reason why the capital of the five new stock 50 indexes can exceed 780 billion yuan in such a short time, and looking at this trend, the total capital scale of these five ETFs will definitely exceed one trillion within the year.

Although the constituents of the New Stock Exchange 50 Index are all good companies, the bubble inflated too fast and the value growth may not be able to keep up.

The launch of some small and medium-cap stock indexes, and then the launch of corresponding ETFs to enrich the market investment varieties, can also play a role in the diversion of funds, alleviate the bubble inflation rate of the new stock 50 index, and also bring more liquidity to other listed targets.

At this time, Fang Hong asked again: "At present, according to the latest closing price, what is the average price-earnings ratio of the four major A-share stock indexes?" ”

Tian Jiayi immediately replied: "The average price-earnings ratio of the New Stock Exchange 50 Index is 70 times, the Shanghai Composite Index is 14.5 times, the Shenzhen Component Index is 38 times, and the ChiNext Index is 71 times. The New Stock Exchange 50 Index is only 50 constituent stocks due to the fact that there are still 15 individual stocks, so it should be about 60 times strictly speaking. ”

Fang Hong couldn't help laughing: "I haven't caught up with the price-earnings ratio of the ChiNext that has been cut in half, and the bubble of the New Stock Exchange 50 Index is smaller than I expected." ”

The current P/E ratio of the ChiNext index is still 71 times after the cut in half, and at the peak of the bull market last year, its P/E ratio reached an outrageous 133 times.

Hearing his words, Tian Jiayi immediately said: "There is no point in benchmarking between the two, right?" The bubble blown up by the GEM has no possibility of filling it up at all, and it is pure hype to say that it is ugly, even if it is cut in half, it is still worthless. It is not suitable to benchmark with the Shanghai and Shenzhen main board indexes, not on the same track, but it is relatively suitable to benchmark with the Nasdaq 100 index of US stocks, and the current price-earnings ratio of the Nasdaq 100 is about 40 times. ”

Obviously, Fang Hong just said casually, of course he knew that it was meaningless for the New Stock Exchange 50 Index to benchmark with the GEM, and the listed companies on the SGX were all good companies that he or Qunxing's professional advisory team checked and listed, especially these companies listed this year, they can basically fill the bubble through value growth in the future, and those listed subsidiaries of the big weight group galaxy are even more so.

On the other hand, more than 90% of the listed companies on the GEM next door are unable to fill the bubble that has been blown up.

In other words, the tickets of the GEM peaked at the historical high last year are basically the top of the universe, and it is impossible to break through, and it is useless to stretch the time period, and some of the tickets that the SGX has peaked are only the top of the stage, as long as the time cycle is extended or even the bottom of the stage.

……

(End of chapter)